China and US Battle For Influence in Pakistan

Top US and Chinese diplomats have visited Pakistan to meet with the country's new prime minister Mr. Imran Khan within days of his assuming office. The US Secretary of State Mike Pompeo was the first to call on Prime Minister Imran Khan in Islamabad. Pompeo's visit was soon followed by a three-day visit by Chinese Foreign Minister Wang Yi. What is at stake in the battle between China and the United States in Pakistan is the prize of global superpower status, according to the US-based Wall Street Journal.

There is a lot of speculation in the western media about the objectives of Pakistan policies being pursued by the two great powers and their impact on the US-China competition for world dominance. Such speculations have centered on the debt related to China-Pakistan Economic Corridor (CPEC) and the US leverage in potential IMF bailout of Pakistan.

American business publication Wall Street Journal has produced a short video explaining how its staff sees what it describes as "US-China conflict brewing in Pakistan". What is at stake in the battle between China and the United States in Pakistan is the prize of global superpower status. Here are the key points it makes:

1. The US-China conflict brewing in Pakistan is about global dominance sought by the two great powers.

2. If China succeeds, it could become the new center of global trade. If the US wins, it could frustrate China's push to become a global power. The impact of it will be felt around the world for decades.

3. China has already surpassed the United States as the world's biggest exporter of goods and services.

4. The biggest project in China's Belt and Road Initiative (BRI) is China-Pakistan Economic Corridor (CPEC) in which China is investing heavily and providing massive loans.

5. China could use the infrastructure built in Pakistan under CPEC to gain access to the Indian Ocean and supplant the United States in Pakistan.

6. CPEC-related spending is sinking Pakistan deeper in debt to China. It could force Pakistan to seek $8 billion to $12 billion bailout by IMF where US is the biggest shareholder with veto power.

7. US does not want the IMF bailout money to be used to repay Chinese debt. Not bailing out Pakistan is not an option because it could cost US an important ally in the region.

8. US could, however, use IMF bailout to limit what Pakistan can borrow from China. Such a condition will achieve the US objective of significantly slowing down CPEC and BRI.

9. Pakistan's dilemma is that it needs both the infrastructure improvements financed by China and the IMF bailout to ease pressure on its dwindling foreign exchange reserves.

10. Whoever wins in Pakistan will become the number one global superpower.

Can US "Spend Them (Chinese) Into Oblivion"?

Here's the Wall Street Journal video:

https://youtu.be/wvw-85CC1t4

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Views: 1483

Comment by Riaz Haq 4 hours ago

Pakistan’s Great Game

By Christophe Jaffrelot

https://www.institutmontaigne.org/en/expressions/pakistans-great-ga...

Conclusion: A Temporary Return to Favor or a Structural Turning Point?
History has accustomed us to seeing Pakistan return to the forefront of the international stage in a more or less fleeting manner. In 1980, General Zia, who had been universally despised following the 1977 coup, suddenly became acceptable again following the Soviet invasion of Afghanistan. In 2001, General Musharraf, who had also been a pariah since his forceful seizure of power in 1999, experienced the same windfall following the September 11 attacks. In 2026, Pakistan appears useful once again, no longer to wage war against the USSR or terrorism, but to make peace. This puts it back in the role of mediator that it has also filled in the past between the United States and China.
In 2026, Pakistan appears useful once again, no longer to wage war against the USSR or terrorism, but to make peace.
Each time, these glorious episodes were very short-lived and came to an end due to criticism of the Pakistani regime’s authoritarianism - with the military always remaining in power, even when civilians are in the forefront; its ties to Islamists accused of terrorist activities - particularly in India; or accusations of nuclear proliferation. Will the same be true tomorrow, once the war in Iran is over and the United States no longer needs Pakistan?

Everything will, of course, depend on the outcome of the conflict and the role Pakistan plays in resolving it-for it will be harder to send Islamabad back home if the world owes it something resembling peace.

India’s ability to isolate Pakistan-the strategy Narendra Modi has pursued for more than a decade-is another important variable, though its significance may be undermined by New Delhi’s drift toward authoritarianism and ethnocracy, as well as by the economic and social crisis threatening the country.

A more significant factor entering the equation relates to regional balances of power: Pakistan will continue to serve as a "net security provider" for Middle Eastern countries such as Saudi Arabia if those countries continue to fear the rise of Israel - a potential regional hegemon - and if they doubt Washington’s intentions, or even its mere reliability. There is no doubt that Pakistan itself will do everything in its power to prevent Israel from asserting itself on the regional stage and to gain influence over Iran-which is what the Israeli-American plan for regime change in Iran might have entailed. At the very least, faced with the risk of Israeli hegemony based on force and repeated military interventions, Pakistan could emerge as the architect of a resistance front bringing together not only Saudi Arabia, Turkey, and Egypt, but also Iran.

Alongside these hypothetical scenarios, one thing is certain: Pakistan has reached a turning point through the recognition of its military capabilities, as reflected in the mutual defense agreement it signed with Saudi Arabia. This point of no return is largely due to the close ties it has forged with China, to which Pakistan owes a significant portion of its strike capability. While the relationship between Pakistan and the United States remains subject to uncertainty due to its tactical nature, the relationship between Pakistan and China is strategic in nature. Since Iran is an important partner of China, in the short term, Pakistan will be all the more inclined to resist attempts to destabilize its neighbor-which it has feared from the very first day of the war anyway. While Islamabad welcomes Iran’s weakening and the setback to its nuclear program, maintaining the current regime is the lesser of two evils (especially since Tehran no longer trusts New Delhi as much as it once did).


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